Page 488 - Fundamentals of Management Myths Debunked (2017)_Flat

CHAPTER 15 • Operations Management 487
technology to improve operations management. Many fast-food companies are competing to
see who can provide faster and better service to drive-through customers. With drive-through
now representing a huge portion of sales, faster and better delivery can be a significant com-
petitive edge. For instance, Wendy’s added awnings to some of its menu boards and replaced
some of the text with pictures. Others use confirmation screens, a technology that helped
McDonald’s boost accuracy by more than 11 percent. And technology used by two national
chains tells managers how much food they need to prepare by counting vehicles in the drive-
through line and factoring in demand for current promotional and popular staple items. 41
Although an organization’s production activities are driven by the recognition that the
customer is king, managers still need to be more responsive. For instance, operations managers
need systems that can reveal available capacity, status of orders, and product quality while prod-
ucts are in the process of being manufactured, not just after the fact. To connect more closely
with customers, production must be synchronized across the enterprise. To avoid bottlenecks
and slowdowns, the production function must be a full partner in the entire business system.
What’s making such extensive collaboration possible is technology. Technology is also
allowing organizations to control costs particularly in the areas of predictive maintenance,
remote diagnostics, and utility cost savings. For instance, Internet-compatible equipment
contains embedded Web servers that can communicate proactively—that is, if a piece of equip-
ment breaks or reaches certain preset parameters indicating that it’s about to break, it asks for
help. But technology can do more than sound an alarm or light up an indicator button. For
instance, some devices have the ability to initiate e-mail or signal a pager at a supplier, the
maintenance department, or contractor describing the specific problem and requesting parts
and service. How much is such e-enabled maintenance control worth? It can be worth quite a
lot if it prevents equipment breakdowns and subsequent production downtime.
Managers who understand the power of technology to contribute to more effective and ef-
ficient performance know that managing operations is more than the traditional view of simply
producing the product. Instead, the emphasis is on working together with all the organization’s
business functions to find solutions to customers’ business problems. (See the Technology and
the Manager’s Job box for more information on technology’s role in the factory of the future.)

::::::: Technology and the Manager’s Job :::::::

WelCOMe TO THe FACTORy OF THe FuTuRe!

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What would the ideal factory of the future look like? produced in the needed time frame. And it will be particularly
Experts at Georgia Tech’s Manufacturing Research important that these factories be efficient and effective.
Center say that three important trends are driving what Given these trends, it’s clear that technology will continue to
tomorrow’s factories will look like. ❶ One trend is globalization play a key role in transformation processes that need to be col-
of the supply chain. In the factories of the future, design and busi- laborative, adaptive, flexible, and responsive. But keep in mind
ness processes will be performed where it’s most efficient and that technology is simply a tool. Future factories will also require a
effective to do so. For example, parts for Boeing’s 787 Dreamliner talented and skilled workforce and a clear understanding of manag-
are produced around the world and then come together in Boeing’s ing operations processes. Those are the challenges facing managers
U.S. facilities. (See Case Application #2 on p. 499 for more info!) who want their organizations to survive and thrive.
❷ The second trend is technology that simultaneously dema-
terializes the product while vastly increasing complexity. The If your professor has assigned this, go to the Assignments section of
challenge for managing operations is that despite simplicity in mymanagementlab.com to complete these discussion questions.
products, the production process is becoming more complex. talk aBOut It 5: How will technology contribute to the
❸ The third trend is demographics and the impact on demand operations management process? What are the downsides to using
patterns. Products will have shorter life cycles and more variety technology in the operations management process?
and choices. The key characteristic of the factory of the future will talk aBOut It 6: In the factory of the future, what role does a
be its ability to change to accommodate whatever product is being manager play?